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EP Energy Corp (EPE) Volume Surges as Stock Skyrockets

EP Energy Corp (EPE) stock and options volume are surging as the shares skyrocket with oil

Mar 7, 2016 at 3:18 PM
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Oil-and-gas stock EP Energy Corp (NYSE:EPE) is on fire, up 74.1% at $6.85 -- a record intraday gain -- after being halted for volatility. In fact, the stock has seen more than 17.3 million shares cross the tape -- nearly triple Friday's annual-high volume of 6.2 million shares. What's more, EPE options are running way hotter than usual, with both the stock and crude oil futures flirting with year-to-date highs.

Roughly 5,000 EPE calls and 3,100 puts have changed hands so far, compared to the security's average daily volume of about 130 calls and 50 puts. The April 6 strike is the most popular on both sides of the aisle, with around 1,100 puts and 700 calls exchanged. However, some of those puts may have been sold to open, meaning the traders are expecting EPE to maintain a perch atop $6 through the close on Friday, April 15, when back-month options expire.

Meanwhile, quite a few shorts could be running scared. Short interest on EPE represents nearly nine sessions' worth of pent-up buying demand, at the equity's average pace of trading.

On the charts, EP Energy Corp (NYSE:EPE) is set for a weekly gain of more than 74%, and is now nearly 60% higher year-to-date. The stock is on pace to end atop its 10- and 20-week moving averages for the first time since June 2015, not even two weeks after touching a record low of $1.60. 

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